Saudi Aramco has announced it has completed a bond issuance of $6bn.
The issuance is comprised of three tranches of USD-denominated senior unsecured notes under Aramco’s Global Medium Term Note Program (GMTN).
The tranches include:
- $2bn senior notes maturing in 2034 with a coupon rate of 5.250 per cent
- $2bn senior notes maturing in 2054 with a coupon rate of 5.750 per cent
- $2bn senior notes maturing in 2064 with a coupon rate of 5.875 per cent
Aramco bond sale
The transaction was priced on July 10, 2024, and the notes are listed on the London Stock Exchange.
The offering was more than six times oversubscribed, based on the initial targeted size of $5bn.
The transaction received strong demand from a diverse base of investment-grade focused institutional investors. All three tranches were favourably priced with a negative new issue premium, reflecting Aramco’s strong credit profile.
Executive Vice President of Finance and CFO Ziad Al-Murshed said: “We are pleased with the strong interest and level of engagement from investors globally, both existing and new.
“Our order book exceeded $33bn at its peak, reflecting Aramco’s exceptional financial resilience and fortress balance sheet. Achieving a negative issue premium across all tranches is a testament to our unique credit proposition.
“We have consistently demonstrated our financial discipline while delivering on shareholder value and business growth, and we aim to maintain a strong investment-grade credit rating across business cycles.”
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